Housebuilders
Article Abstract:
United Kingdom housebuilders were faced with slower sales in Sep 1998, when interest rates rose to 7.25%, and there were also fears of a recession. The sector has tended to perform well when interest rates are less than 8%. Rates were subsequently cut until they reached 5%, and the sector recovered. Stock prices for companies in the sector have risen by between 30% and 40% from Jan 1999 to Aug 1999. House prices have risen but are still affordable in terms of their relation to wages. Land price inflation has been a problem for the industry, as have planning permission delays, even for urban sites.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Homeless rising
Article Abstract:
UK housebuilders have been hit by the crisis of the UK real estate industry and are leaving the sector. BICC is selling its housing division and could receive between 80 million pounds sterling and 90 million pounds for this. Tarmac is also leaving the sector and the housebuilding divisions of Costain, Mowlem and Birse have sold. Some six companies could leave the sector in the eighteen months from Aug 1995. Other companies are still committed to the industry, such as Higgs and Hill.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Building in the cost of provisions
Article Abstract:
UK housebuilders have made land provisions during the early 1990s recession. Companies have sometimes acquired land when prices were rising after 1990, expecting the housing market to recover, which it has not done. Margins will be affected if housebuilders have to carry on offering incentives to buy their houses, and land provisions are more likely to appear. Companies likely to announce provisions include Banner Homes, Tarmac, and Coutryside Properties.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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